Global semiconductor spending to rise by 2.9% in 2017 to reach $70bn

Global semiconductor capital spending is projected to grow 2.9 per cent in 2017 to reach $69.9 billion, market research firm Gartner said on Friday.

The stronger growth in 2016 was fuelled by increased spending in late 2016 which can be attributed to a NAND flash shortage which was more severe in late 2016 and will persist though most of 2017.

NAND flash memory is a type of non-volatile storage technology that does not require power to retain data.

“This is due to a better-than-expected market for smartphones, which is driving an upgrade of NAND spending in our latest forecast,” said David Christensen, senior research analyst at Gartner.

NAND spending increased by $3.1 billion in 2016 and several related equipment segments showed stronger growth.

The thermal, track and implant segments in 2017 are expected to increase 2.5 per cent, 5.6 per cent and 8.4 per cent, respectively.

“Compared with early 2016, the semiconductor outlook has improved, particularly in memory, due to stronger pricing and a better-than-expected market for smartphones,” the report noted.

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